I am trying to install the above noted unit to the kitchen and in the wall there are only two wires (black and white). The above noted unit manual shows three places where wires go (black, white and red). What should I do, connect another wire from the hot lead to the red? I already installed the ground wire.

You have an unmarked switch loop. Switch is usable for single or double pole. It should be marked "load " and "line ". You will need to find which of the 2 wires in the wall is the power and connect that to the line side. Then connect the other wall wire to the load side. If all works, cap the red and put behind the switch. Then put a piece of black tape on the white wall wire to ID as a conductor.

Occupancy sensor IPP15-1 requires a neutral.
You have a switch loop. One wire brings power from the light fixture box to the switch, the other wire returns power to the light fixture itself. You do not have a neutral at the switch box.

You cannot use the Occupancy sensor IPP15-1.

... I agree with hk...
Sensor switch does offer a universal neutral / ground connection for installations such as this... I can't find this option with the Leviton.